Basis for Determining the State's Compensation Responsibility at Tax Authorities: What Does It Include? How is the Tax Authority's Liability for Damages Regulated?

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Bases for Determining the State Compensation Responsibility at Tax Authorities Include What?

Based on Decision 657/QD-TCT in 2023 regarding the Regulation on State Compensation at Tax Authorities at all levels issued by the General Director of the General Department of Taxation.

According to Clause 1, Article 4 of the Regulation issued with Decision 657/QD-TCT in 2023 as follows:

Bases for Determining the State Compensation Responsibility

1. Bases for Determining the State Compensation Responsibility

The Tax Authority is responsible for compensation when having sufficient bases as follows:

- There is one of the bases for determining the illegal act of the tax official executing public duties causing damage and there is a corresponding compensation request according to the provisions of Clause 2, Article 7 of the Law on State Compensation Liability;

- There is actual damage to the damaged person within the scope of responsibility for compensation of the Tax Authority;

- There is a causal relationship between the actual damage and the act causing the damage.

As such, according to the current regulations, there are bases for determining the state compensation responsibility mentioned above. The Tax Authority will rely on these bases to carry out compensation.

Bases for Determining the State Compensation Responsibility at Tax Authorities Include What? How is the responsibility for damage compensation of the Tax Authority regulated?

What is the Time Limit for Requesting State Compensation at Tax Authorities?

Based on the provisions of Article 5 of the Regulation issued with Decision 657/QD-TCT in 2023 as follows:

Time Limit for Requesting Compensation

1. The time limit for requesting compensation is 03 years from the date the person entitled to request compensation provided in Clauses 1, 2, and 3, Article 5 of the Law on State Compensation Liability receives the document that serves as a basis for requesting compensation, except for cases prescribed in Clause 2, Article 52 of the Law on State Compensation Liability and the case of requesting restoration of honor.

2. The time not counted in the time limit for requesting compensation

a) The period during which there is a force majeure event or an objective obstacle as prescribed by the Civil Code preventing the person entitled to request compensation provided in Clauses 1, 2, and 3, Article 5 of the Law on State Compensation Liability from exercising the right to request compensation;

b) The period during which the damaged person is a minor, a person without civil act capacity, or a person with limited civil act capacity or a person with difficulty in perception or behavior control without a legal representative, or the legal representative has died or can no longer continue being the representative until a new representative is appointed.

3. The person requesting compensation is obligated to prove the period not counted in the time limit prescribed in Clause 2 of this Article.

The time limit for requesting state compensation at the Tax Authority is 03 years from the date the person entitled to request compensation receives the document that serves as a basis for requesting compensation.

There are 02 periods not counted in the time limit for requesting state compensation at the Tax Authority:

- There is a force majeure event or an objective obstacle;- The period during which the damaged person is a minor, a person without civil act capacity, or a person with limited civil act capacity or a person with difficulty in perception or behavior control:+ Without a legal representative;+ Or the legal representative has died;+ Or cannot continue being the representative until a new representative is appointed.

How is the Responsibility for Damage Compensation of the Tax Authority Regulated?

Based on Article 2 of the Regulation on State Compensation at Tax Authorities at all levels issued by the General Department of Taxation with Decision 657/QD-TCT in 2023, the Tax Authority has the responsibility for damage compensation in the following cases:

1. Issuing an unlawful administrative penalty decision;

2. Applying unlawful measures to prevent and ensure the handling of administrative violations;

3. Applying unlawful enforcement measures to implement administrative penalty decisions;

4. Unlawfully imposing taxes, fees, and charges; unlawfully collecting taxes, fees, and charges; unlawfully recalling taxes or tax refunds; unlawfully collecting land levy;

5. Not applying or unlawfully applying measures under the Law on Denunciations to protect whistleblowers when requested as provided in Clause 6, Article 17 of the Law on State Compensation Liability in 2017;

6. Performing acts prohibited by the Law on Access to Information regarding the intentional provision of false information without correction and without re-providing the information;

7. Issuing an unlawful decision to discipline and dismiss a tax official within the authority of the Head of the Tax Authority.